Allahabad High Court Upholds Legality of Bank Account Freezing in Ongoing Investigation

Court advises petitioner to seek remedy through appropriate legal channels following account freeze due to suspicious transactions.

In a significant ruling, the Allahabad High Court has dismissed a writ petition seeking the defreezing of a bank account, reinforcing the legal stance on the police's power to seize property, including bank accounts, during an investigation. The judgment, delivered by Justices Ajit Kumar and Swarupama Chaturvedi, held that the freezing of Marufa Begum's bank account by the Bank of Baroda, as directed by the Cyber Crime Department of Gujarat, was justified under Section 106 of the Bharatiya Nyaya Suraksha Sanhita, 2023.

The case arose when Marufa Begum, a Shikshamitra (teacher) employed at Prathmik Vidyalaya in Kaushambi, found her savings account frozen following the deposit of ?35,000 from an unknown account. Despite attempts to resolve the issue with the bank, she was informed that the account freeze was in compliance with ongoing investigations into the suspicious transaction.

The court reiterated the legal provisions under the Bharatiya Nyaya Suraksha Sanhita, 2023, which empower police officers to seize property believed to be linked to criminal activity without needing prior approval from a magistrate, provided they report such actions to the magistrate subsequently. The court highlighted the importance of following procedural norms and cited the Supreme Court's decision in Teesta Atul Setalvad v. The State of Gujarat (2018), which affirmed the legality of such investigative actions.

Notably, the court advised Marufa Begum to pursue alternative remedies through the investigating authorities or competent courts rather than invoking the extraordinary jurisdiction of the High Court under Article 226 of the Constitution. The judgment underscores the balance between investigative authority and individual rights, emphasizing procedural compliance in property seizure cases.

Bottom Line:

Freezing of bank account under Section 106 of Bharatiya Nyaya Suraksha Sanhita, 2023 (formerly Section 102 of Cr.P.C.) is legally justified when done on directions of investigating authorities in connection with suspicious transactions. Police can seize property during investigation without prior order from Magistrate, but must report such seizure to the Magistrate.

Statutory provision(s): Bharatiya Nyaya Suraksha Sanhita, 2023, Section 106; Constitution of India, 1950, Article 226.

Marufa Begum v. Union of India, (Allahabad)(DB) : Law Finder Doc Id # 2802839